What is the likely effect on the market for wine of a simultaneous increase in both consumer incomes and producer taxes on wine?
A. An increase in both price and quantity
B. An increase in price and a decrease in output
C. A decrease in price and an indeterminate effect on quantity
D. An increase in price and an indeterminate effect on quantity
D. An increase in price and an indeterminate effect on quantity
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Some consumer electronics products such as plasma TVs, DVD players, and digital cameras, are introduced at very high prices but over time, their prices start falling (beyond what could be attributed to falling costs as companies take advantage of
economies of scale and cheaper technologies). Which of the following is the best explanation for this observation? A) Early adopters of these new products typically have a higher demand and higher income compared to those who are willing to wait. B) More firms are likely to enter the consumer electronics market over time, forcing market prices down. C) Early adopters are more quality conscious and are willing to pay higher prices for the initial production of these goods. D) After satisfying the demand for early adopters, firms lower price to attract the more price-sensitive consumers.
Sale of U.S. government bonds to foreigners is an example of direct foreign investment in the United States
Indicate whether the statement is true or false
If you sold a short futures contract you will hope that bond prices
A) rise. B) fall. C) are stable. D) fluctuate.
If average cost is falling, then marginal cost must be less than average cost.
Answer the following statement true (T) or false (F)